A Perfect Play for Runaway Regulation

If I were to start my hedge fund again, the first thing I would do is bring in TriNet Group (TNET), the outfit that figures out all your human resource needs and keeps you from reinventing the wheel.

When I started my hedge fund, things were pretty simple. We had some legal regulations created by the SEC, we needed K-1s drawn up by an accountant, and the rest -- staffing, staying current with the laws -- was up to me because there weren't many laws. I heard that I had to have workers comp, so I hired some insurance company and got some. I needed a health care plan, so I called the only outfit in those days that did health care in New York.

These days everyone has rights that didn't exist back then. These days every state has rules, and they differ from state to state. These days you have to spend real time working on health care plans. Most important, I would be scared to death of the Affordable Care Act. Who has time to do that? And who has the money to have a full-time person find out about this stuff and then stay on top of it? That person costs money. The assistant that the person would need costs money. And the knowledge base isn't deep enough so others who would do it for free get paid anyway.

In short, the regulations are too hard for the person in charge to spend time on. They are too complex for a good person to understand. The people with the knowledge cost too much.

So, you go to TriNet. That's why the stock keeps going higher. It's a perfect play on runaway regulation, which is exactly what we have.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.